Correlation Between Jinhe Biotechnology and Zhongshan Broad
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By analyzing existing cross correlation between Jinhe Biotechnology Co and Zhongshan Broad Ocean Motor, you can compare the effects of market volatilities on Jinhe Biotechnology and Zhongshan Broad and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Jinhe Biotechnology with a short position of Zhongshan Broad. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and Zhongshan Broad.
Diversification Opportunities for Jinhe Biotechnology and Zhongshan Broad
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jinhe and Zhongshan is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology Co and Zhongshan Broad Ocean Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongshan Broad Ocean and Jinhe Biotechnology is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Jinhe Biotechnology Co are associated (or correlated) with Zhongshan Broad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongshan Broad Ocean has no effect on the direction of Jinhe Biotechnology i.e., Jinhe Biotechnology and Zhongshan Broad go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and Zhongshan Broad
Assuming the 90 days trading horizon Jinhe Biotechnology Co is expected to under-perform the Zhongshan Broad. In addition to that, Jinhe Biotechnology is 1.16 times more volatile than Zhongshan Broad Ocean Motor. It trades about 0.0 of its total potential returns per unit of risk. Zhongshan Broad Ocean Motor is currently generating about 0.04 per unit of volatility. If you would invest 485.00 in Zhongshan Broad Ocean Motor on December 4, 2024 and sell it today you would earn a total of 174.00 from holding Zhongshan Broad Ocean Motor or generate 35.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Jinhe Biotechnology Co vs. Zhongshan Broad Ocean Motor
Performance |
| Timeline |
| Jinhe Biotechnology |
| Zhongshan Broad Ocean |
Jinhe Biotechnology and Zhongshan Broad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhe Biotechnology and Zhongshan Broad
The main advantage of trading using opposite Jinhe Biotechnology and Zhongshan Broad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology position performs unexpectedly, Zhongshan Broad can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Zhongshan Broad will offset losses from the drop in Zhongshan Broad's long position.| Jinhe Biotechnology vs. Jiujiang Shanshui Technology | Jinhe Biotechnology vs. Northking Information Technology | Jinhe Biotechnology vs. Montage Technology Co | Jinhe Biotechnology vs. Heren Health Co |
| Zhongshan Broad vs. Goldlok Toys Holdings | Zhongshan Broad vs. Zhongshan Public Utilities | Zhongshan Broad vs. Sportsoul Co Ltd | Zhongshan Broad vs. Shanghai Yanpu Metal |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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